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Risk on a stock portfolio which can be reduced by placing...

This question belongs to Commerce Financial Management
Financial Management
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Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as

Answer & Solution
Correct Answer: Option C
Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as diversifiable risk. Diversifiable risk is the possibility that there will be a change in the price of a security because of the specific characteristics of that security.
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